Question

How much simple interest would you earn on $1,000 if you left it in an account for 9 months? The account pays 3% simple interest for 1 year. Explain how you found your answer. ​

Answer 1

Answer:

$I=\ 22.5$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=\frac{9}{12}\ years$  ----> one year is equal to 12 months

$P=\ 1,000\\r=3\%=3/100=0.03$

substitute in the formula above

$I=1,000(\frac{9}{12})(0.03)$

$I=\ 22.5$